Lawmakers Fight Sale Of Huge Private Utility

The Authority Of Four Other Counties Would Not Be Accountable To Osceola.

June 16, 2002|By Monica Scott, Sentinel Staff Writer

KISSIMMEE -- An Osceola legislator wants to pour water on the proposed buyout of the state's largest privately owned utility.

State Rep. Frank Attkisson, R-Kissimmee, is trying to block the proposed purchase of Florida Water Services, which operates in Osceola and 26 other counties, by the Florida Governmental Utility Authority for $520 million.

The deal would affect 260,000 people statewide, including 19,000 customers in Osceola and 59,745 throughout Central Florida.

Attkisson said if Florida Water Services is bought he will push legislation to ensure accountability because residents will have no protection from excessive rate increases. He said he would aim to have oversight through the Public Service Commission or county government.

"I think it is atrocious what they are trying to do," Attkisson said. "The accountability factor is being taken away from the ratepayer."

Attkisson has written to county officials to express his concerns about the proposed deal and to let them know the Florida Governmental Utility Authority is allowing counties to opt out of the acquisition.

Also fighting the sale is state Sen. Anna Cowin, R- Leesburg, who had a public meeting on the proposal last week in Leesburg.

"They [attorneys for FGUA] are saying the rates won't change, but we're skeptical," said retiree Albert Nardi, who pays $25 to $30 a month for water. "We are the ones that will be footing the bill if they don't get the cash flow. That's our big concern."

Ben Nabors, attorney for the authority made up of Polk, Citrus, Nassau and Sarasota counties, said the group doesn't anticipate rate increases for five years but cannot guarantee it.

The authority was scheduled to vote on the sale this week, but Nabors said it is reevaluating the price tag and a decision may not be forthcoming until July.

Affected counties and cities, had complained the price was too steep and would drive up future costs.

The authority wants to divide Florida Water Service's utility systems into 12 separate utilities, 11 stand-alones and one consolidated system that would include smaller systems such as in Lake.

Several cities and counties were on hand for the lengthy presentation as well as representatives from the Public Service Commission and Auditor General's Office and other agencies.

Cowin said she thinks intense scrutiny of the deal and accountability issues forced the delay of the purchase. She said if oversight is not included before purchase she would pursue legislative action.

"I will go to all ends to make sure this is reviewed and the individual ratepayers aren't left holding the bag," Cowin said.